Overview and Analysis of Emirates Airline

Overview and Analysis of Emirates Airline Emirates airline: aN overview Dubai based airline company is the subsidiary of Emirates Groups. The airline is the leading as well as the largest airline of not only UAE but also of Middle East. The airline operates more than 3400 flights per week. These flights take off from its hub at UAE to more than 133 cities in 73 countries around the world. The Emirates Groups service Emirates Sky Cargo undertake the cargo activities of this airline. According to 2007 report the airline is declared as the leading airline in term of revenue it generate, fleets (group of planes), and the passenger it carry, of Middle East. The airline is also the 10th largest airline in the world in term of travels who travel every week from this airline. From Dubai to Houston, Los Angeles, Sans Francisco, and Dallas company operate four of the world largest no stop commercial flight. Twenty year ago, Emirate Airline was born as the official airline of UAE. The airline in 1985 e started its operations, when in mid-1980’s the Gulf Air cutback to Dubai. From tan till now the airline has shown tremendous growth. The airline purchase its aircraft from the top companies in the world Air Bus and Boeing. The airline operates the mixed air fleets which are the wide-body aircrafts. And the company is one of the few in the world to use all wide-body aircraft. Recent by ordering 140 Air Bus A380s, the company is become the second to operate these air craft after Singapore. In aviation industry the company has established the strong brand name. Moreover, as the aviation leader in Middle East the company is providing quality services to its passenger from long ago. And this airline is hopeful in maintaining it strong growing position in future also. With many award in 2012 the company is also ranked 8th best airline in term of services it is providing around the world. culture and ORGANIZATIONAL structure The company has diverse culture, as it has many subsidizers and more than 50 parent company. And it’s operating in many industries and sectors. The industries company is catering are airport services, hospital industry, catering, and engineering. The total number of employees in this company were 38797 in the fiscal year 2011 (Group, 2011). The prime aim of the company as well as its employees are to deliver the unique and superior customer services. As for as, their employees are concerned, for them employees are their key assets and they provide many benefits to the employees including the old age benefits, fringe benefits, bonuses and many other benefits. They pay they gives to their employees are merit base pay as well as the pure performance based pay. Therefore, their employees are also loyal to the company (Group, 2011). Environmental Context Analysis of the UAE Organizations are referred as an open system, where there are many forces that directly or indirect affect the organizations. Environmental analysis is the analysis of forces around the organization that affect or make an impact on the ability of the organization to take decision. These forces are further divided as the macro forces as well as the micro forces. Micro forces are closer to company and have influence on company ability to full fill its customer’s needs and wants. These forces include the customers of the company, company itself, its competitors, the market intermediaries and many other stakeholders (Global Marketing Environmental Factors Affecting Marketing Strategy, 2013). Moreover, the macro environment of the company is the political, social, economic and technological forces around the company that affect the micro economic forces. In term of UAE, the environment of UAE is the dynamic environment. Economically the country is one of the fastest growing country in the world. The GDP growth of the country is exceptional. Some of the major contributor factor to this growing economy are the different sectors in the country ‘i.e.’ oil and gas sector, tourisms sector, transportation industry, education sector, trade sector, foreign direct investment, as well as many other sectors(). Micro environment of UAE is its trading partners, competitor ‘i.e.’ other countries in the Middle East region and UAE itself. While the macro factors are the political condition of the country its economic condition, society and the technological development in the country (PESTLE Analysis of UAE 2012, 2012). Economic Environment Economically the country has seen many ups and down in the previous years. However, the country has successfully take out itself from the economic crisis of 2008 and 2009, which was mostly due to world economic crisis and decline in trade. Today the economy of the country is growing on fastest pace and the recorded economy in 2013 was 4.4 percent, which was expected to reach at 4.8 percent this year. Due to ideal place for conducting businesses and due to best tourist spots in the country, the country is the ideal place for foreign investors. Socio-cultural Environment On social-cultural basis the country is one of the diverse in this Middle East region. People from many other countries come to live in UAE or for visiting UAE. Moreover, as the country has flourishing tourism industry therefore, from many country every year millions of people travel to UAE for holiday. Due to increasing diversity in the country there is mixed culture flourishing in the country (interact, 2014). Political and Legal Environment Politically UAE is strong and the political condition in UAE is stable. The environment is ideal for doing business as government does not interfere in business activities. The government has also establish a trade free zone for conducting businesses activities. Moreover, it has also provide lot of opportunities for foreign investors. In short, the government of UAE is stable politically, with strong political reforms. And the government is working hard for the development of UAE. Factors that may affect the airline industry are worldwide terrorisms and war. Technological Environment AND Natural Environment Technological the country is also growing, likewise in telecommunication industry Etisalat is the market leader, and providing best services in telecommunication industry around the world. The introduction of new technology will also affect the airline industry in positive as well as negative way. As for as natural resources are concerned UAE is rich in two of the biggest natural resources ‘i.e.’ petroleum and natural gas reserves. Competitor Analysis The competitors of Emirates Airline are the all other airlines from UAE. Some of the prominent airlines from UAE other than Emirates Airline are Etihad Airline, and Qatar Airline. Etihad Airline is another growing airline of UAE. The airline started its operations in 2003 and from that time till today the organization has shown exceptional growth in term of providing quality to the passengers who travel through this airline. Qatar Airline is another major competitor of Emirates Airline. In very short time span the company has establish it some a major competitor of other airlines. Right after its pre-lunch in 1997 Qatar Airline has awarded with many prestigious awards (Ceos message | Qatar Airways, 2014). However, the Emirates Airline is growing on a faster pace than its competitors. Direct Competitors In airline industry there is lot of competition. This section of the report will in-detail analyze some of the major direct and indirect competitors of Emirates Airline. And try to rate them on term on 1 to 5 rating in scale in term of quality by asking from people. We ask sample of 15 people to rate out competitor’s brands and our brand price quality on rating scale of 1 to 5. The analysis provided us with the certain weakness and strengths of Emirate Airline with regards to its competitors. Rating scale 1-5 Emirates Airline Etihad Airways Qatar Critical Success Factors rating rating rating Quality 5 4 3 Price 4 3 4 Availability 5 5 3 Good Will 4 3 4 Promotional Activities 5 4 3 Table 1 Emirates Airline receives rating of 4.6 rating, whereas, Etihad Airways receives an average of 3.8 rating and Qatar Airways receive the rating of 3.4. So it shows that over all Emirates Airline is working better as compared to other competitors. Moreover, there brand is better in term of quality, packaging and other factors to score higher these from customers. Analysis of Competitive Strategy and Position Positioning referred as the creating the image of the product in the mind of the customers as well as the consumers. These airlines mostly position there brand on following factors. These are mentioned in their mission statements, vision statement and as well as on their web site. Therefore we take the rating scale of 1-10 to rate these factors. The reason is that to know on which basis these organizations position their products. Rating scale 1 to 10 Emirates Airline Etihad Airways Qatar Airways Factors on which these airlines positioned their brands Rating Rating Rating Quality 10 9 8 Price 8 9 10 Availability 10 10 9 Good Will 9 9 8 Promotional Activities 10 10 10 Table 2 Above data clearly show that in term of quality, price, availability and promotional activities the top of the mind brand is Emirates Airline. While, Etihad Airways is the second brand in term of quality, good will and other mentioned factors in the mind of people. In term of quality people rate airlines as 10 for Emirates Airline and 9 and 8 for the rest two airlines Competitive Advantage In today world every organization is engaged in competition. In airline industry the competition is increasing day by day as the competitors are trying to provide more quality services then each other. in case of Emirates Airline as it is the oldest airline of UAE and has shown the tremendous growth over the time therefore, toady it’s as clear cut competitive advantage over it competitors. Market Research The airline industry of UAE ha lot of potential for growth as the UAE is the hub of tourism and millions of people as a tourist visited this country. Therefore the demand for services provided by many airlines is increasing day by day as the population of UAE is increasing. The main point that has to be cover are as follows: first thing that is required, is the identification of the targeted audience. Furthermore, the second that have to make clear is the need and wants of that targeted audience. The later part will in detail mentioned the targeted audience and the need and wants of that targeted audience. Mentioned earlier the main and the foremost thing in the marketing is target market identification. From this mean that we have to clarify that who are our potential buyer who will enjoy our services. For the purpose of identifying the target audience marketer first have to divide the market into different segments and then on the basis of their needs and wants offering them the desired product (DeMers, 2012). Emirate Airline target audience includes people of: business people, families, and transit passengers. Once a targeted audience is identified we have to look the need and wants of that targeted audience. Moreover, we have to look which need is least and which one is of most importance. Second aspect is that how the particular airline is going to satisfy or dissatisfy with the available services with respect to each of the priority important needs and wants. As for as Emirate Airline is concerned the basic need of people through this airline are comfortable journey, quality services, quality food during traveling, and may other required facilities during traveling. Like facilities that should be provided to disable and aged people are also cater by Emirates Airlines. (Special Needs | Essential Information | Emirates Online Booking and Planning | Emirates, 2014). Customer Analysis This section will in detail analyze the targeted market of Emirates Airline. Basically, the customer analysis is the way of gathering data from customer to known about their purchase decision. Therefore, the section in detail analysis the potential customer of this airline and the different factors that affect their purchase decisions. Three type of people is the target audience of Emirates Airline business people, families, and transit passengers. Target Market Segmentation Description Area / Region: UAE, and all six continent in the world AGE:people of all ages Gender:Both Family Life Cycle:Bachelors, married, working women, office working people, old age people are the targets. Other people:Business people, families, professional and other people from all over the world Table 3 Decision Making Process Analysis external consumer behavior variables Consumer behavior is the acts and decision processes of the consumer which they shows during the purchase the product as well as services. Different studies of consumer behavior has indicated that how individuals, groups and organizations make purchase decision and buy goods and servicer according to their needs and desires. While making purchase decision many factors affect consumer buying behavior (Dudovskiy, 2013). Factors that may affect the people travel through Emirates Airline are as personal factors, cultural factors, psychological factors and most important the social factors. Personal factors Factors such as our income, occupation, our life style which include daily basic activates, interests, as well as opinions. These factors are one of the most vital predictor of people buying behavior. Therefore, people choice regarding whether to travel through this airline or any other and if yes whether to travel through economic class or business class totally depended on these factors ‘i.e.’ on the income and their way of living (Personal Factors Affecting Buyer’s Behavior, 2010). Cultural factors and social factor Buying activities are deeply influenced by cultural factors such as: culture, subculture, and social class. Culture is defined as totally learned behavior that contain shared values believe, norms, customs and rituals of particular region. These shared values and beliefs have great impact on consumer behavior while making a purchase a certain product. Society has also great influencer on purchasing decision of consumers in different situations. Different forces that combined together create society are references groups, family groups and opinion leaders. Family also have great influence on buying behavior (Perreau, 2013). Positioning Strategy Emirates Airline Factors/ attributes on which airline positioned their brands Rating Quality 10 Price 8 Availability 10 Good Will 9 Promotional Activities 10 Diversification 10 Market segmentation research is an understanding of the market’s product needs and wants. It is the process of dividing potentialmarketsor consumers into specific groups and offering product according to their needs. Positioning is referred as creating the image of your product in the mind of that divided potential market. Moreover, positioning referred as factors on which companies differentiate their brand from their competitors. In analyzing product positioning, needs and wants are commonly referred to as product attributes. Some of the bases on which Emirates Airlines position their products are price, quality, demographic, by providing diversified products and many other basis. The Emirates Airline also position their products on following above mention factors in mind of their divided potential market. Additionally, the airline has become number choice of the families around the world. Moreover, the airline is economically strong and it will never turn down. Three type o f passengers toward whom they tailored their marketing and positioning strategy are business people, families, and transit passengers. Diversification is referred as offering new services to new market. The Emirate Airline also adopt that strategy. And toady Emirates Airline also known as low cost carrier (rodrigo, 2012). product strategy Being a service provider the major aim of the airline is to provide comfortable journey to its customers. And, as they also cargo carrier then their major aim is also provide on time delivery to its customers. Therefore, ensuring the quality services is the foremost strategy of the airline. Moreover, the airline always try to remain first in adopting new technologies and providing unique services. pricing strategy Emirate Airline is positioning their product on the basis of price. For example Emirate Airline has succeed to avoid its prices matching with what other airlines are offering product to customers at lower price. They have competitive pricing strategy. Moreover, another pricing strategy that Emirate airline is following is the premium pricing strategy (Emirates flight pricing sales strategy, 2014). The prices are not fixed they are flexible and it’s due to economic condition around the world. distribution CHANNELs The wholesaler and retailer through the use of their cargo services send their products to end customer. Therefore the no of channel between end customers are three. advertising strategy For Promotion of their brands Emirate Airline uses of traditional marketing techniques like: Word of mouth Web site promotional campaigns Social Networking TV and Print media Ads They allocate a handsome amount for their advertising budget. They also follow Informative Advertising: where they try to create brand awareness and knowledge of new products or new features of existing products. customer services and relationship activities Their cargo service provide on time delivery to its customers. Moreover, their major aim is provide the quality services for that they have dedicated team that work day and night for ensuring the quality (Special Needs | Essential Information | Emirates Online Booking and Planning | Emirates, 2014). For them their main aim is that they provide such services that their customers get full satisfaction. Over the time they have built strong relationship with their customers. Therefore, the airline is first choice of customer around the country and around the world. CONCLUSION Dubai based airline company is the subsidiary of Emirates Groups. The airline is the leading as well as the largest airline of not only UAE but also of Middle East. The airline operates more than 3400 flights per week. These flights take off from its hub at UAE to more than 133 cities in 73 countries around the world. The Emirates Groups service Emirates Sky Cargo undertake the cargo activities of this airline. With the only aim of providing the quality services as well as the comfortable journey to its travelers the airline is the leading airline of Middle East region. From long ago the airline is applying full fledge marketing strategies to ensure the quality services they are providing to their clients. They are following the best promotional strategies, pricing strategies, advertising strategies, and distribution strategies. Their position in the market is better than its competitors. Recommendation The only recommendation is that, they have to position their marketing activities while considering all their competitors. As, Etihad Airline is also doing well and providing tough time to its competitors. According to an article it is clearly mention that Etihad along with Emirate Airline are providing tough time to its competitors. Moreover, Etihad Airways is also providing best services and providing full customer satisfaction. Therefore, Emirate Airline has considered that also as Etihad may become threat for the Emirate Airline in future.